In a positive development for the struggling wind energy industry, tariffs for pure wind projects trended downwards as ReNew Power, Sembcorp, Evergreen Power, Adani, and Azure Power emerged winners in Solar Energy Corporation of India’s (SECI) 1200 megawatt (MW) tranche XI tender.
In an e-reverse auction concluded by SECI, ReNew (300 MW), Sembcorp’s wholly-owned subsidiary Green Wind Infra Energy (180 MW), and Evergreen’s Anupavan Renewables (150 MW) won their bids at Rs2.69 per unit, while 450 MW went to Adani at Rs2.70.
This was the second SECI wind bid held this year. The earlier one, from tranche X with a capacity of 750 MW, fetched the lowest tariff of Rs2.77.
The companies that missed out on the tender were O2 Power (Rs2.72), JSW Energy (Rs2.80), Ayana Power’s subsidiary Project Nine Renewable (Rs2.80), Torrent Power (Rs2.84), and Enel Power’s Tunga Renewable Energy (Rs2.89).
This comes as welcome news for the wind energy industry that has been facing a myriad of problems over the past few years, mostly arising from non-payment of existing dues by state-owned distribution companies (DISCOMs).
These problems have only worsened during the covid-19 induced lockdown, which completely halted the supply chain of ongoing projects and mounting costs. The efficiency of the power generated from wind turbines has also been trending downwards, due to uneven flow of monsoon winds and accumulated efforts of climate change over the Indian subcontinent.
The SECI had floated is a tender for setting up of 1,200 MW interstate transmission system (ISTS)-connected wind power projects in the country in May this year.
According to tender document, the power generated by the developers selected under this auction would be sold to the discoms of Madhya Pradesh. The buying entities will procure power under the tender through Madhya Pradesh Power Management Company Limited (MPPMCL), which is the authorised representative for signing the power sale agreement, on behalf of the MP discoms.